Tariffnama: Lose some, gain some

Automobile and ancillaries

Since India has a miniscule share of the US automobiles market, the impact will be concentrated on a few manufacturers. According to Ashika Institutional Research, Tata Motors has an exposure through Jaguar Land Rover (JLR), which sells over one-third of the volume to the US. These models are manufactured in UK and India facilities, which will attract respective tariffs. Royal Enfield, which has mid-size category share of 8% in the US market, may also show marginal impact. Among auto ancillary makers, Samvardhana Motherson International, given the distributed nature of its manufacturing facilities across the globe, including the US, Europe, Africa will show a mixed impact. Other companies such as Bharat Forge, Ramkrishna Forgings, and Sona BLW Precision Forgings will also be affected.
Gems and Jewellery
According to market estimates, tariffs on loose diamonds and gold jewellery may rise to 20% and 7% from nil. The US is a large market for Indian jewellers, forming one-third of the category exports from India. According to ICICI Direct, reciprocal tariffs will lead US retailers to search for other supplying options with lesser tariffs, which is negative for Indian exporters.

Companies with India-centric business model, including Titan Company, PN Gadgil Jewellers, Thangamayil Jewellery, will be on investors’ radar.

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TEXTILES A relatively lower tariff when compared with highly competitive low-cost producers such as China, Vietnam, and Bangladesh — top three exporters to the